In re Levis

No. 008-50-4244 (SSA Office of Hearings & App. Nov. 22, 1996) ; Clearinghouse Number: 51579

Description

ALJ Waives Recovery of SSI Overpayment

Abstract

The administrative law judge (ALJ) has waived recovery of a $4,089 Supplemental Security Income (SSI) overpayment that resulted when recipient received a $10,000 inheritance check but failed to cash it or to inform the Social Security Administration (SSA). Recipient refused the inheritance but was issued the check anyway. Six months later she deposited the check in her bank account; she reported this to SSA. Her benefits were discontinued until she documented that her resources had been spent down to the $2,000 in countable resources allowed by the SSI program. SSA sought to recover the payments made during the six months that she held the uncashed check. Recipient argued that a nonnegotiated check should not be considered "available" for purposes of determining her resource eligibility for SSI and, further, could not result in an overpayment of benefits. The ALJ held that while the uncashed inheritance check was considered a countable resource in determining SSI eligibility, 20 C.F.R. § 416.1201(a), claimant was without fault in creating the overpayment because she did not know or could not have known about resource limitations and transfer of resources, 20 C.F.R. § 416.552. Recovering the overpayment would defeat the purpose of the Social Security Act because it would deprive claimant of income required for ordinary and necessary living expenses.

Additional Information

Attorney Information
Claimant represented by William R. Dysart, Vermont Senior Citizens Law Project, 264 N. Winooski Ave., P.O. Box 1367, Burlington, VT; (802) 863-5620.
Docket Date
1996-11-22 00:00:00+00:00

Files

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